Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the companys operations in July appear below:

Required:

1. Prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Vulcan Flyovers Operating Data For the Month Ended July 31 Actual Results 54 Flexible Planning Budget Budget 54 52 Flights (9) $ 16,300 $ 18,900 $ 18,200 Revenue ($350.00) Expenses : Wages and salaries ($3,500 + $87.00g) Fuel ($31.009) Airport fees ($860 + $34.00) Aircraft depreciation ($10.009) Office expenses ($240 + $1.009) Total expense Net operating income 8,164 8,198 8,024 1,842 1,674 1,612 2,581 2,696 2,628 540 540 520 462 294 292 13,589 13,402 13, 076 $ 2,711 $ 5,498 $ 5,124 The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount